Write an essay on the performance of German Banks and how they have changed compared to European banks. Do they have Adequate regulations or overregulation?

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Adequate regulations or overregulation

Prudential requirements and the results of German banks

Banking supervisory requirements

1. introduction
– Definition and importance of banking supervision
– Background and objectives of banking regulation
– Question and structure of the seminar paper

2. bank regulatory requirements
– Overview of important regulations for banks (e.g. Basel III, CRD IV, MaRisk)
– Content and objectives of the regulations
– Effects of the regulations on banks (e.g. higher capital requirements, stricter risk assessment)

3. results of German banks
– Overview of the economic situation of German banks in recent years
– Analysis of the development of key figures such as profit, return on equity, cost-income ratio in comparison to other banks in Europe and worldwide
– Impact of regulations on results (positive/negative)

4. discussion
– Evaluation of the results: Appropriate regulations or overregulation?
– Statement on possible alternatives to current banking regulation
– Outlook and recommendations for the future design of banking supervision

5 Conclusion and summary

What matters to me is the performance of German Banks and how they have changed compared to European banks. If they have Adequate regulations or overregulation.

 “Ethical Conduct is a key requirement for managing Investment Portfolios”. Discuss this topic and provide an appropriate example to support your discussion.

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Discussion Topic:

 “Ethical Conduct is a key requirement for managing Investment Portfolios”. Discuss this topic and provide an appropriate example to support your discussion. (3 Marks)

 

Provide mortgage advice to Helen. Identify appropriate mortgage options and comment on their affordability as well as advising Helen about other costs of buying a property. Calculate Helen’s net pay and suggest a possible monthly budget that may help Helen manage her money in the first year of owning a property.

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Financial Advise with case study

Instructions on Assessment:

The Williams Family

Background

William and Jennifer Williams live in the North East of England. They own a property valued around £450,000 and this is owned as a beneficial joint tenancy. They have been married for 22 years and have had no children together. William has one 29-year-old daughter, Helen, from a previous marriage. Helen currently lives with William’s ex-wife.

William is 58 and in good health. He previously married at 21 but then divorced at 35, when he met Jennifer. He had a clean-break settlement in his divorce and his ex-wife has no claim on his finances.

William’s elderly mother lives 10 miles away in her own property in Newcastle. She is a widow and at 83 still lives on her own. The property owned by William’s mother is valued at £310,000 and her will leaves it to split equally between William and his sister Beverly.

Jennifer’s parents are younger. Jennifer is 53 and her parents are in their mid-seventies and live in the South East of England, some distance from Jennifer, who is their eldest child. They own a large house that has a current market value in the region of £1,550,000. They also have some jointly held investments amounting to £245,000 and ISAs of £74,000 each. On the first death, Jennifer’s parents would like to leave the remainder to the surviving partner (their property is jointly owned currently). On the second death they would like to leave as much of this as possible to Jennifer and her younger brother Steven. They are very keen that the “tax man should not have any of Jennifer and Steven’s inheritance” but do not know much about inheritance tax. They are aware they may have to pay tax but would like to mitigate this where possible. Jennifer’s brother Steven is married with one thirteen-year-old daughter Freya, Jennifer’s niece.

Employment and Pensions

William worked for a private company in the North East from the age of 16 to 35, Then he was made redundant. During his employment, he contributed to a defined benefit pension scheme. He has accrued 19 years of pensionable service and is due to receive his full pension benefits from April 2024, when he will be 60. His latest statement indicated his annual pension at that time is estimated to be £15,240. This figure will increase in line with inflation. The total transfer value of his pension, should he want to transfer his pension to a defined contribution scheme is £700,000. He no longer contributes to this scheme.

William now works for the National Health Service with an annual salary of £25,750. He contributes to a public sector defined benefit scheme paying 8.3% of pay into the scheme each month. Based on benefits accrued to date, his latest statement predicted an annual pension of £5,500 plus a tax-free compulsory lump sum of three times this amount. This is also payable in full when he is 60 and will rise with inflation. William does not anticipate that his salary will change significantly between now and when he intends to retire at 60 and therefore for the purposes of planning for retirement, he bases any plans on these figures. William is keen to retire as soon as financially possible. William’s death in service benefit (life assurance) is £66,500 and a survivor pension would be payable to Jennifer in this event.

Jennifer is an academic at a local University with an annual salary of £56,800. She has two pension schemes. She is a member of the Teacher’s Pension Scheme (a defined benefit scheme) and contributes 10.2% of her salary each month. She is unsure how much her annual pension will be when she decides to draw it but knows that there is an online calculator which she can use to help her with her planning. She is aware that she has options in relation to the age she can retire from education and the size of the lump sum relative to the annual pension she can choose to take. Currently, she has built up 15 years of contributions in the scheme from when she started her job at the university to now. Her full teacher’s pension is payable at 67 but the scheme allows members to retire earlier than this, but this has consequences to the pension payable. She thinks that her pension provides for William in the event of her death but is not quite sure. Jennifer particularly wants to know what her potential pension and lump sum would be at 60 and 67. She loves her job but does not want to be too old when she retires, especially as William is older than her.

Jennifer also has a private defined contribution pension. The total fund value is currently £88,760. She has not contributed to this scheme for many years but still receives her annual statement showing how the fund has grown. By the age of 65, this fund is forecast to be able to buy an annual annuity of around £3,500 per annum. Jennifer is a bit disappointed with this value. She would like to know if there are any alternatives to having to draw an annuity.

Both William and Jennifer are due to receive a full state pension at the age of 67.

William and Jennifer have heard about the 2015 pension freedoms in the media. They have discussed how it would be useful to access their pension funds for various purposes, including paying off the remainder of their mortgage and other debts. They have heard that the reforms allow individuals to access their pensions at 55 but do not know much else about the changes or which types of pensions they relate to. William has heard that it is possible to transfer his defined benefit schemes to a defined contribution scheme to take advantage of the reforms potentially allowing him to retire even earlier than he intends to. He has also heard that there are some disadvantages of doing so, therefore he seeks clarity on this.

Property and other assets

William and Jennifer have a joint repayment mortgage with Santander that they took out years ago. The current outstanding balance is £13,000 with around one year until the total sum is fully repaid. They currently repay £950 per month.

They have contents and buildings insurance but have no other insurance policies, other than those already mentioned and car insurance on their two cars.

Jennifer owns a small house in Scotland. She bought the house at the end of July 1995 for £75,000 paying purchase costs of £2,500. She lived in it for 5 years as her main residence but then moved away. Since then, she has used it as a holiday home and often lets friends use it free of charge. She has recently put it up for sale for an asking price of £375,000 (with predicted costs of sale of £1,900).

Jennifer also has a valuable antique that she was bequeathed by her grandparents that she intends to sell at auction this year. The probate value was £14,000 and she has been advised by an expert that it is now worth £42,000 and she hopes to realise this. Jennifer does not know if she will have to pay tax on these disposals but would like to find out about any ways in which this tax liability could be minimised.

Once both assets have been sold, she wants to use some of the money to build a fund to help provide a university education for her niece Freya, as well as to help her with a small house deposit to buy a property in the future. She wishes to earmark £60,000 for this purpose.

Jennifer would like to invest this £60,000 and any remaining proceeds of the asset disposals not used for other purposes in a portfolio of investments to grow her money. She is happy to take on some risk but wants to make sure that the £60,000 earmarked for Freya is safe. She does not want to have to do much to manage the portfolio, as she is very busy.

William was left £15,000 by his grandfather, when he passed away eight years ago. This is invested into £9,000 premium bonds, £3,500 cash ISA and the remainder in a savings account with a local building society. Jennifer has suggested he invests in something that will give a better return, but William is inherently risk averse. He has however thought that he may be willing to take on a little more risk. He would therefore be open to suggestions as to how he could invest this, and any other money he may have from other sources.

Estate planning

William and Jennifer currently do not have a will. Both would like each other to inherit their assets when they die and have assumed this will happen. After both deaths, they would like Helen and Freya to be provided for equally. They are not sure if they need a will, and both admit to knowing very little about them or the consequences of dying intestate. They are also concerned on the impact of ill-heath and making sure that if they are unwell, the other can make decisions for them.

Helen

William’s daughter Helen currently lives with her mother. She has been saving for a deposit on a property so that she can move out and live independently. She is not sure on how to proceed. She has saved £12,000 with the help of grandparents to date. Her gross salary is £29,000 per annum.

Other Liabilities 

William and Jennifer have a car loan with a balance outstanding of £6,500. This is due to be fully paid up in 3 years’ time. They currently pay £300 per month. Jennifer has £8,500 on a credit card. She only pays the minimum balance off this each month (approximately £200).

Income and expenditure

William and Jennifer do not wish to substantially change their lifestyle. They do not have surplus income at the present time as like to holiday often and eat out frequently.

 

 

 

Assessment Tasks

You are to write a financial plan in the form of a client report (2500 words) for the Williams family that covers the following:

You should base this plan on what you have learnt in this module and your own research. You should ensure that the plan is coherent and well communicated to the couple.

It should include:

  1. Financial advice for the couple to include:

 

– A statement of the couple’s objectives over the short, medium, and long term.

– An assessment of the couple’s assets and liabilities and, based on your advice, how these will change between now and retirement (exclude potential inheritances from this assessment).

– Forecast annual income and expenditure between now and retirement based on your financial advice. You should prepare two alternative scenarios: Jennifer retiring at 60 and Jennifer retiring at 67 (William retiring at 60 in both cases). You may use excel and copy into the report as appendices. You must calculate the current net pay of William and Jennifer. Please use the information in the case and appropriate assumptions to support your forecasts.  16 marks

 

  1. Specific advice regarding the 2014/15 pension reforms. You should make clear to the couple to which pensions they are relevant and what options the couple have as a result. You must provide specific recommendations for William as to the final salary scheme transfer, including the advantages and disadvantages of transferring his defined benefit scheme to a defined contribution scheme.  8 marks
  1. Advice regarding all issues mentioned in the case study in relation to capital gains and inheritance taxation and estate planning. Your answer should include a calculation of the Capital Gains Tax (CGT) liability if Jennifer disposes of both assets in the current tax year. You should give advice as to how this could be mitigated and demonstrate how much tax could be saved with these measures. You should also calculate the potential Inheritance Tax (IHT) liability due on William and Jennifer’s parents’ estates and advise how this could be mitigated. You are expected to use 2022/23 tax year for your calculations. (You should assume that Jennifer has owned the property for 28 years in your calculations). State any other assumptions you make.    14 marks

 

  1. Based upon the couple’s risk profile, recommend two separate investment portfolios for William and Jennifer. You should consider the funds available, clearly showing where these funds have come from. You should also attempt to model the performance of the portfolio between now and retirement.   14 marks
  2. Provide mortgage advice to Helen. You should identify appropriate mortgage options and comment on their affordability as well as advising Helen about other costs (both one off and continuing) of buying a property. You should calculate Helen’s net pay and suggest a possible monthly budget that may help Helen manage her money in the first year of owning a property.      8 Marks

 

You should state any assumptions that you make, but you need to ensure these are from robust sources. You need to identify any information that you would need to seek clarification on from William and Jennifer. You are the financial advisor, and you should treat the information in the case as if it has been gathered from a first client meeting.  Additional information and calculations should be included as appendices. However, these must relate specifically to the case study and support the financial plan you produce. Appendices or tables are not included in the word count.

You must base any calculations on the 2022/23 tax year.

Note this is not an essay, it is a report for the client. You should write to the client in the report. You need to ensure that any sources are referenced in text and at the end in a reference list. You should use appropriate sections and clearly show this in a table of contents at the start of the report.

  • Total 60 marks

You oversee the purchasing department of Best Buy, the electronics and appliance retailer, and are concerned about the funding gap in your cash conversion cycle. Which of the following will not reduce the funding gap?

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The Finance Perspective

Why finance is obsessed with cash and the future

Note that some questions may have more than one answer.

You oversee the purchasing department of Best Buy, the electronics and appliance retailer, and are concerned about the funding gap in your cash conversion cycle. Which of the following will not reduce the funding gap?

  • Increasing the payable period
  • Increasing sales
  • Decreasing receivables collection period
  • Decreasing days inventory

Which of the following is a disagreement between finance and accounting? (Choose all that apply.)

  • What constitutes economic returns (net profit or free cash flows)
  • How to value assets (historical cost or future cash flows)
  • Where to record inventory (on the income state- ment or on the balance sheet)
  • How to value equity (book value or market value)

In 2016, Pfizer invested $350 million in a new plant in China. For which of the following present values of the plant’s cash flows does that decision make sense? (Choose all that apply.)

  • $300 million
  • $400 million
  • $500 million
  • All of the above

You are considering starting up a Five Guys Burgers & Fries franchise, which you estimate will cost $250,000. You expect to make considerable free cash flow for the next five years, after which you will sell off the franchise for $200,000. The discounted values of those cash flows are $90,000, $80,000, $70,00$60,000, and $180,000 (which includes the fifth-year cash flow, as well as the proceeds of the sale), respectively. Which of the following is likely to be the net present value of your investment?

  1. $180,000
  2. $230,000
  3. $480,000
  4. $600,000

Why does finance add back depreciation and amortization in its measure of economic returns?

  • Depreciation is highly uncertain and should not be counted.
  • Companies often overspend for assets, leading depreciation to be too high.
  • Depreciation isn’t a cash expense.
  • Depreciation appears on the balance sheet, not the income statement.

One share of Facebook stock is being traded at $150. If so, which of the following does the stock market believe to be true?

  • The present value of all future free cash flows from Facebook’s business, after netting out cash and debt, implies a Facebook stock value of $150.
  • You can always sell a share of Facebook stock for at least $150.
  • The net present value of buying one unit of Facebook stock is $150.
  • The discount rate on future cash flows used to value Facebook stock is 15 percent.

United States Steel Corporation has a receivables collection period of thirty-three days, a days inventory of sixty-eight days, and a payables period of forty-nine days. How long is its funding gap?

  • –14 days
  • 52 days
  • 84 days
  • 150 days

If your supplier offers you a 2 percent discount if you pay twenty days earlier than you would have other wise, how much is the supplier implicitly charging you for a twenty-day loan?

  • 0 percent
  • 1 percent
  • 2 percent
  • This is a discount, not a loan, so there is no implied interest rate.

Your company builds a new plant with an investment of $100 million and an expected present value from its future cash flows of $150 million. Two years later, it becomes apparent that the new product isn’t selling as well as expected, and the present value of future cash flows at that point is only worth $50 million. Should the company shut down the plant?

  • Yes, the net present value is now negative.
  • No, the present value is still $50 million.
  • Which of the following is true about free cash flow?
  • It is for equity providers only and is tax adjusted.
  • It is for all capital providers and is tax adjusted.
  • It is for equity providers only and is not tax adjusted.
  • It is for all capital providers and is not tax adjusted

 

 

Increased leverage allows companies to control more assets and increase their ROE. What’s bad about leverage?

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Discussion questions

Increased leverage allows companies to control more assets and increase their ROE. What’s bad about leverage?

  • It reduces productivity, which can decrease overall ROE.
  • Leverage-based profits are not cash-based and are ignored by finance.
  • Leverage multiplies losses, too, as it increases a company’s risk
  • There is nothing bad about leverage—using other people’s money is a good way to increase the value of the company.

What types of companies are more likely to have high leverage?

  • Companies with high growth opportunities in new industries
  • Companies in stable, predictable industries with reliable cash flows
  • Technology companies
  • Companies with low profitability

In 2009, Warren Buffett invested $3 billion in Dow Chemical, via an issuance of preferred stock. Which of the following is not an advantage of preferredstock to the owner of the preferred stock?

  • In the case of bankruptcy, preferred stockholders get paid before common stockholders.
  • Even when common stockholders get no dividends, preferred stockholders may get dividends.
  • Preferred stock is associated with ownership in the company, unlike debt.
  • Preferred stock dividends must be in even- numbered percentages (2 percent, 4 percent, etc.).

Which of the following is least likely to be listed as an asset on a balance sheet?

  • Gilead Sciences Inc.’s patent for the highly profit-able hepatitis C treatment it developed in-house
  • Google’s corporate headquarters
  • Payments owed to Ford Motor Company by dealer-ships for the purchase of cars
  • The $42 billion in Facebook’s bank accounts at year-end 2017

Which of the following companies is most likely to have the highest inventory turnover?

  • Subway, a fast-food restaurant company
  • Books-A-Million, a bookstore chain
  • Whole Foods, a grocery store
  • British Airways, an airline

Which ratio is a distinguishing feature of retail companies?

  • High ROE
  • Low receivables collection period
  • High inventory turnover
  • High total debt/total assets

BHP Billiton is one of the world’s largest mining companies, and accounts receivable make up 21 percent of its total assets (in 2016). Which of the following companies is most likely to owe BHP Billiton money as part of BHP Billiton’s accounts receivable?

  • Bank of America, a global bank
  • Mining Recruitment Agency, a recruiter for em- ployees specialized in mining
  • Sysco, a food distributor
  • United States Steel Corporation, a steel manufacturer

Which of the following constituencies care most about a company’s current ratio?

  • Its stockholders
  • Its suppliers
  • Its competitors
  • Its customers

True or false: a high ROE is always a good thing.

  • True
  • False

Home Depot, a home improvement supply store, issued $2 billion in debt in late 2016. What is the main difference between debt and other liabilities, like accounts payable?

  • Debt carries an explicit interest rate.
  • Debt represents ownership in the company.
  • Debt is a residual claim.
  • Debt is only owed to suppliers

 

 

 

Describe the similarities and differences between the two stock exchanges. Explain how a company’s free cash flow impacts its growth potential. Cite the free cash flow of example companies.

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Week 2 Activity – Stocks

Overview
Investing in stocks is an option when planning for retirement or other financial management decisions. In this activity, you will research how to evaluate stocks as an investment option.

Instructions
In a 1–2-page paper, please respond to the following:

Explain the differences in stock trading between two different stock exchanges.
Identify two different stock exchanges in the United States.

Describe the similarities and differences between the two stock exchanges.
Explain how a company’s free cash flow impacts its growth potential. Cite the free cash flow of example companies.

Identify one company on each of the two stock exchanges you researched in 1.
Determine the free cash flow from 2019 and 2020 for each company.
What inferences can you draw from the companies’ free cash flow?
Apply financial ratios to evaluate the strengths and weaknesses of stocks as investments.

Using the 2019 and 2020 financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year.

What challenges, strengths, or weaknesses do you see when you examine these ratios?

Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that have fuelled this growth. Why is the US dollar’s most widely used quotation currency in foreign exchange markets?

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Foreign exchange

  • This assignment is an individual
  • The Assignment must be submitted only in WORD format via the allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well-presented. Marks may be reduced for poor presentation. This includes filling in your information on the cover page.
  • Students must mention the question number clearly in their answers.
  • Late submissions will NOT be accepted.
  • Avoid plagiarism, and the work should be in your own words. Copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answers must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

 Assignment Questions:

  1. Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that have fuelled this growth. Why is the US dollar’s most widely used quotation currency in foreign exchange markets? (5 marks)

 

  1. Saudi Arabia has recently increased its degree of openness; hence it engaged in a higher level of international (financial & non-financial) activities. Briefly discuss the following along with providing one example:
  • How would this affect our economy?
  • How would this affect our BoP? Current account & financial account.
  • How would this affect our exchange rate?

 

Since it is pegged exchange rate regime, increasing the level of international trade will affect the exchange rate, so how would the Saudi Central Bank react to this? (5 marks)

 

  1. The International Monetary Fund (IMF) regularly publishes its assessment of the prospects for the world economy. Use the IMF’s current analysis to form your expectations of its immediate economic prospects in Saudi Arabia. IMF Economic Outlook:  imf.org/external/

(5 marks)

 

Determine the two possible stock prices for the next period. Determine the intrinsic values at expiration of European call option with an exercise price of $25.

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Case Study Foreign Exchange (Mark: 10)

The Foreign Exchange Market is all set to welcome the FX portals that are sure to revolutionise the way Forex trading would take place in future. Their viability would depend on the way participants would embrace them and on the competition that would ensue. The two portals that have hit the market amid great fanfare are FX all and Atriax. By providing a sufficient range of currencies to the players to allow ease of execution and by giving access to a range of prices from different sources at all times, these portals are aiming to garner liquidity. Instead of being in a win-lose situation, a win-win scenario could emerge if both the systems would work in tandem and manage to capture a large enough portion of the growing Foreign Exchange Market pie. Forex trading itself is expected to zoom because of growing B2B transactions over internet as the investors are going global and holding greater foreign securities in their portfolios. Therefore, a more price sensitive and web-enabled Foreign Exchange Market would emerge, which in turn would result in transactions that are complex to liquidate and time consuming to settle. For the automated marketplace where information need looms large, lies the answer in the form of such portals.

The success of these platforms would depend on a host of factors such as their automatic execution, the method of providing prices to the users, the number of partnership agreements that the portal has the number of banks it caters to, etc. The other important feature will be their pricing engines. The quality of the pricing engine, its ability to handle huge volume of transactions and the quality of transaction services, such as ease of settlement, pre-trade information etc. will all determine their fate.

However, from the user’s point, the problem that emerges is would the cost of settling with multiple counter parties (as opposed to just using one or two lead banks for FX trading) come in the way of using a multiple price service? But the customers have been working on integration with a single bank for long, these FX platforms should be attractive, as they will only have to make one investment to access multitude of dealers.

However, for such electronic trading to gather momentum, users need to shift from telephone-based to screen-based trading which would be a tough task. Then they are to be persuaded to move to a single-dealer channel from the multi-dealer channel, which would not be very difficult once the initial step is taken.

When the traditional and clerical jobs are automated by these electronic exchanges, sales desk officers/client relationship managers would be left with more time to spend on value added activities–delivering advice and information. Hence, these platforms could go a long way in lowering cost and improving service quality.

Question:

  1. Do you think that a web-enabled Foreign Exchange Market would revolutionise the forex trading practices in the future? Elucidate with examples.

Q.2 Consider a stock worth $25 that can go up or downby15 percent per period. The risk-free rate is 10 percent. Use one binomial period.                                                                       (05)

  1. Determine the two possible stock prices for the next period.
  2. Determine the intrinsic values at expiration of European call option with an exercise price of $25.
  3. Find the value of the option today.
  4. Construct a hedge by combining a position in stock with a position in the call. Show that the return on the hedge is the risk-free rate regardless of the outcome, assuming that the call sells for the value you obtained in part c.
  5. Determine the rate of return from a riskless hedge if the call is selling for $3.50 when the hedge is initiated.

 

 

 

 

 

 

 

 

 

From institution-based and resource-based views, identify the liabilities of foreigners confronting an MNE from emerging economies interested in expanding overseas. How can the firm overcome those challenges?

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DISCUSSION QUESTION

1.From your experience and by conducting research online and/or in person and explain why an organization should outsource their transportation activities. Provide an example of an organization within Jacksonville, FL who is currently contracting out their transportation services. Explain why they are contracting out these services and mention the pros and cons if they decide to transport their good/services internally. (TRA 3132)

2.From institution-based and resource-based views, identify the liabilities of foreigners confronting an MNE from emerging economies interested in expanding overseas. How can the firm overcome those challenges? (TRA3270)

 

In your view, what would cause the cash book of an enterprise to disagree with the bank statement at the of month? Explain what you would include under Cost of sales of an enterprise during the preparation of final accounts for your organization?

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ASSIGNMENT

Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. He has been undergoing a rigorous training and orientation exercise at the firm. A client of the firm, Grout Industries Company Limited (GICL) whose Accountant left abruptly for greener pastures, has brought a list of account balances to aid in the preparation of the final accounts of the Company. This assignment has been referred to Henry to test his financial accounting skills.

Required:

Q.1.

(a)Taking the role of Henry and using the data provided, show how you would explain the performance of the company for the year ended 31st Dec. 2021.

(b)Discuss the reasons various stakeholders may be interested in the accountsof Grout Industries Company Limited showing, for each of them, their information needs.

©Explain, how in your view ‘you would treat a bad debt that had beenwritten off and the debtor resurfaces and pays towards the end of accounting

  1. d) Evaluate four major ways through which a company like GICL
  2. e) With illustrations, show how you would interpret Financial statements tothe different stake holders using the data provided.
  3. f) Identify what you would consider important to appear in your end of yearFinal accounts for Twekambe industries.
  4. g) Explain the meaning of Non -current Assets in business setting.
  5. h) Explain the rationale of the Accounting Equation to the various beneficiaries of Accounting information can raise capital for expansion purposes

Q.2

a)Using the knowledge you have acquired in this course and as per guidance fromIAS I and IPSAS 1, what would you consider a complete final Accounts ready for publication?

b)Explain how you would interprete Financial statements to the different users of accounting information with illustrations.

c)As per IAS 16: PPE, how would you recognize your company’s assets that wereacquired with the intention of generating Revenue

(d) Explain how you would treat debtors of business?

 

Q3.

  1. a) In your view, what would cause the cash book of an enterprise to disagree with the bank statement at the of month?
  2. b) Explain what you would include under Cost of sales of an enterprise during the preparation of final accounts for your organization?
  3. c) What do you understand by a financial year as used in accounting and reporting?
  4. d) How would you explain the meaning of ‘’accounting cycle’’ to someone with no accounting background?